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Online Businesses-- Things You MUST Know About the Pay Plan

Jun 13, 2008
Considering a home business opportunity objectively is not an easy project. The website and marketing materials for each business are designed to maximize the positives and minimize the negatives. This is'nt good nor bad in itself; it's just a fact. After seriously considering at least a hundred business opportunities, I made a list of "Things You Have to Know." These are further divided into Things To Know About The Company, The Products, The Pay Plan, and The Training. This article will cover what you should know about the pay plan.

What you need to know about the pay plan

1. If you are going to put in the time and effort it takes to build a successful business, make sure you are working toward a secure and increasing residual income. This will generally come from one or both of two sources: from ongoing monthly fees (dues, subscriptions, etc.), or from repeat sales to the end customer. If the pay plan has any kind of breakaway feature, you will constantly be building just to keep up with the parts of your business you lose as people "break away" from you.

2. Stay away from any kind of pass up pay plan. Pass ups can be called a variety of names ("qualifying sales," for instance), but they all do the same thing. Your first "X" number of sales goes to your sponsor. After that, he makes no more money off your efforts, but has new people which will produce sales to be passed to him. Once you have met your pass up requirement, your sponsor has NO incentive to help you.

3. I am a fan of mlm, but they have one great flaw-- it takes tens or hundreds or thousands of people in your downline to make any serious money. Most of the time, this is a direct result of the small profit margins of the plans and products. If each sale or recruit brings you only a few dollars a month, the money does not pile up very quickly. Look for a big ticket type plan where you can make up to $900 per sale.

4. Find a company with a pay plan that does not require you to harass all of your family and friends. If you have already worked on them with one of your "can't miss" businesses, you have probably learned this. If this is going to be your first trip into the home business field, be ready for the fact that your family and friends won't want to take you up on anything until you are earning some money without them.

After the company, products, and pay plan have met the requirements of your check list, you are ready to find out what you have to know about the training.
About the Author
Looking for a good and reliable home business or mlm? Don't risk getting ripped off. Read Jack Beddall's informative series of articles about things you need to know to evaluate any Internet opportunity.
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